Previous

Page - 3

The problem for most companies is that Product and Promotion is strangely enough, the easiest to redo or remake. Cost competencies which affect Price and Distribution, and supply chains, which make Place irrelevant, are far more difficult to obtain. They take experience and initial investment.

4 A's of Marketing Strategies

4 A's means Affordability, Availability, Acceptance & Awareness.

Affordability

Rural consumer affordability is very low. So marketers need to concentrate on this. LG developed a TV in late 1990s with on-screen displays in Indian languages such as Hindi, Bengali, Tamil & Marathi. The sub-brand, SAMPOORNA, has predominantly kept for the rural markets price Rs. 2000 to Rs. 3000 than competitive national TV brands. As an extension of SAMPOORNA, an entry-level CTV called CINEPLUS was launched in rural markets, priced attractively at Rs. 5000.

Availability

1. Availability of electricity is hurdle in the countryside. PHILIPS developed free power radio, a radio set that does not need batteries for electricity. It runs on simple winding of a layer provided in the set with an attractive price at Rs. 995 per set.

2. To remove fluoride content from hand-pumps, Ion Exchange designed water-purifying attachments to the pumps that do not need electricity.

3. NOKIA developed affordable cell-phones for rural areas with unique features like local language capability, present time / cost units on calls, etc.

4. ICICI Banks' rural ATMs are battery operated.

5. DENA Banks' ATMs have VOICE INSTRUCTIONS for rural.

6. BP Energy Cells have SMOKELESS biomass run stoves (Oorja) for rural markets with attractive price at Rs. 675 in Tamil Nadu.

7. Bank of India introduced BHUMIHEEN Credit Card for providing credit facilities to landless farmers.

Next

* Contributed by: -
Sri Lakshmi K. & Sri Rama Murty D.,
Students of PGDM,
Institute of Public Enterprise (IPE), Hyderabad.
Article posted on December 14, 2008.